Orlando median price soars in January as inventory dwindles

February 19th, 2013 1:48 PM by Brent Ferry

As reported by the Orlando Regional Realtor® Association.

The median price of Orlando homes sold during the month of January shot up more than 18 percent over that of January 2012, a year-to-year increase not seen since the tail end of the red-hot housing market in March 2006, reports the Orlando Regional REALTOR® Association.

The January median price of $128,000 is 18.52 percent above that of January 2012 ($108,000) and 3.40 percent below that of December 2012 ($132,500).

All sales types experienced year-to-year increases in median price in January. The median price of normal sales increased 10.49 percent, while the median price of foreclosures increased 14.12 percent and that of short sales jumped 22.22 percent

Completed Sales

Members of ORRA participated in 1,923 home sales that closed in January 2013, an increase of 11.09 percent compared to January 2012. Orlando has now experienced seven consecutive year-to-year increases.

The January 2013 sales tally reflects a 23.23 percent decrease compared to December 2012. According to ORRA Chairman Steve Merchant, Global Realty International, the January-to-December sales drop is an annual trend.

"Over the past eight years, the traditional January-to-December sales drop has ranged from a high of 32 percent in 2006 to a low of 17 percent in 2011,” says Merchant. "The decline reflects taxpayers’ rush to close by year’s end in order to take advantage of the homestead exemption, a primary benefit of homeownership.”

Compared to January of 2012, the number of short sales (455) decreased 30.00 percent and the number of foreclosures (514) increased 13.97 percent. The number of completed traditional sales (954), however, is a 51.43 percent increase compared to last year.

Homes of all types spent an average of 81 days on the market before coming under contract in January 2013, and the average home sold for 95.98 percent of its listing price. In January 2012 those numbers were 96 days and 92.23 percent, respectively.

The average interest rate paid by Orlando homebuyers in January, 3.44 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.01 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,432. The number of pending sales in January 2013 is 3.18 percent lower than it was in January 2012 (8,709) and 6.96 percent higher than it was in December 2012 (7,883).

Short sales, which take much longer to process from contract to close, made up 64.48 percent of pending sales in January 2013. Normal properties accounted for 22.83 percent of pendings, while bank-owned properties accounted for 12.69 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 7,336. In January 2013, inventory was 20.76 percent less than it was in January 2012.

The inventory of single-family homes is down by 24.71 percent when compared to January of 2012, while condo inventory has increased by 2.42 percent.

The month-of-supply decreased in January when compared to January 2012: Current inventory combined with the current pace of sales equates to a 3.81-month supply of homes in Orlando right now, while there was a 5.35-month supply in January 2012. There was a 2.95-month supply in December 2012.

Affordability

The January affordability index is 250.41 percent, an increase of eight points from December’s index of 242.31. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $54,872 can qualify to purchase one of 4,068 homes in Orange and Seminole counties currently listed in the local multiple listing service for $320,528 or less. First-time homebuyer affordability in January increased to 178.07 percent from last month’s 172.31 percent.

First-time buyers who earn the reported median income of $37,313 can qualify to purchase one of the 2,886 homes in Orange and Seminole counties currently listed in the local multiple listing service for $193,742 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando was exactly the same in January 2013 as it was in January 2012: 287.

The most (77) condos in a single price category that changed hands in January were yet again in the $1 - $50,000 price range and accounted for 26.83 percent of all condo sales.

Orlando homebuyers purchased 173 duplexes, town homes, and villas in January 2013, which is a 1.76 percent increase compared to January 2012. Most (30) fell within the $100,000 - $120,000 price range category.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were up by 7.42 percent when compared to January of 2012. Throughout the MSA, 2,330 homes were sold in January 2013 compared with 2,169 in January 2012. Each individual county’s monthly sales comparisons are as follows:

Lake: 21.45 percent above January 2012 (368 homes sold in January 2013 compared to 303 in January 2012);

Orange: 2.27 percent above January 2012 (1,128 homes sold in January 2013 compared to 1,103 in January 2012);

Osceola: 3.60 percent above January 2012 (403 homes sold in January 2013 compared to 389 in January 2012); and

Seminole: 15.24 percent above January 2012 (431 sold in January 2013 compared to 374 in January 2012).

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.